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TTB NEWSLETTER | Weekly News

November 20, 2020

IN THIS ISSUE

Greetings! This week’s top news includes the establishment of the Tehachapi Mountains AVA, and information for domestic brewers about who should apply for label approval in contract brewing and alternating proprietorship arrangements.

TEHACHAPI MOUNTAINS AMERICAN VITICULTURAL AREA ESTABLISHED

On November 19, we published T.D. TTB–164 in the Federal Register to establish the 58,000-acre Tehachapi Mountains American viticultural area (AVA) in Kern County, California. The final rule is effective on December 21, 2020. The Tehachapi Mountains viticultural area is not located within any established viticultural area.

We are establishing this AVA in response to a petition submitted on behalf of local vineyard owners and vintners. We designate viticultural areas to allow vintners to better describe the origin of their wines and to allow consumers to better identify wines they may purchase.

See Docket No. TTB–2020–0006 at Regulations.gov for all documents and public comments related to this rulemaking.

CONTRACT BREWING & ALTERNATING PROPRIETORS: WHO GETS THE COLA?

For domestic brewers, a Certificate of Label Approval, commonly known as a COLA, authorizes the bottling (or packing) of malt beverages, and when required, it must be obtained prior to bottling the beer (including in cans and kegs). We’re often asked, “Who gets the COLA in contract brewing and alternating proprietorship arrangements?” The quick answer is that the person who bottles the beer is required to obtain the COLA.

Who Gets the COLA in a Contract Brewing Arrangement?

• Contract brewing is an arrangement in which one person pays a brewing company to produce beer for them
• The contract brewer is responsible for:

  – Brewing product
  – Formula submission (if required)
  – COLA submission (if required)
  – Keeping appropriate brewery records
  – Paying taxes upon removal from the brewery

Who Gets the COLA in an Alternating Proprietorship Arrangement?

• An alternating proprietorship is when two or more brewers take turns using the physical premises of a brewery
• Both the host and the tenant must qualify as a brewer and are responsible for:

  – Obtaining a Brewer’s Notice
  – Producing beer
  – Keeping and maintaining brewing records
  – Obtaining COLAs and Formulas (if required)
  – Paying appropriate taxes upon removal

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